Need for ADR & Advantages/Disadvantages

ADR (Alternate Dispute Resolution): Any method outside the regular court used to resolve a dispute — Arbitration, Conciliation, Mediation, Negotiation, or Lok Adalat.

Why India Needs ADR

Domestic Needs

• Pendency: Over 4 crore cases pending across all courts.
• Cost: Court fees + lawyer fees beyond the common person’s reach.
• Time: A simple civil suit takes 10–20 years to conclude.
• Justice for All: Article 39A of the Constitution demands equal justice and free legal aid.

International Commitments

• UNCITRAL Model Law on International Commercial Arbitration, 1985 — incorporated in the A&C Act, 1996.
• New York Convention, 1958 — for enforcement of foreign arbitral awards.
• Geneva Convention, 1927.
• WTO + globalisation = foreign investors demand neutral, fast ADR.

Constitutional Mandate

• Article 14 — Equality before law demands speedy justice.
• Article 21 — Right to life includes speedy trial (Hussainara Khatoon v. State of Bihar, 1979).
• Article 39A — Equal Justice and Free Legal Aid.
• Article 51 — Promote international peace and respect for international law.

Methods of ADR

Advantages of ADR

• Speed: Resolved in months, not decades.
• Cost: Far cheaper than court litigation.
• Confidentiality: Private; not in public record.
• Flexibility: Parties choose procedure, language, arbitrator.
• Win-Win: Preserves business and family relationships.
• Expert Decision-Maker: Parties choose a domain expert.
• Reduces Court Burden.

Disadvantages of ADR

• No appeal in most cases: Final award is hard to challenge.
• Not for criminal/serious offences — murder, rape, treason are non-arbitrable.
• No precedent value: Awards are private; do not develop the law.
• Powerful party may dominate (in negotiation/mediation).
• Cost of arbitrator: Famous arbitrators charge crores.
• Enforcement issues if the losing party resists.

Suitability of ADR to Different Disputes